OKAY: I will do some work here.
1. Been in banking since 2000.
2. Masters in Business Administration.
3. Qualified underwriter. (In the USA)
Answering above confusion:
1. What most negatively affects your credit most are the following:
a. Poor payment history
b. Too high of balances/credit limits
c. Too many new trades (credit lines)
d. Thin file (too few trades) or what we call Lack of established history
and to a lesser degree
e. Moving around too much (yes, it can)
f. Too many trades (simply like having way too much exposure out there).
2. Paying loans off early does NOT hurt you at all .... unless it is your only open credit account. It usually helps your score as stated previously.
3. Paying your monthly minimum is better. NO NO NO NO NO NO NO. WRONG. First off, you will be accruing interest which will only compound over time. Secondly, the only reason you dont want to pay your whole credit debt is if you are establishing credit. You won't be able to show a consistent pay history if your credit is new and the balance is paid in full each month. The CBR algorhythms take many factors into account.
4. NOT RELATED... Never close 5 cards and consolidate into 1. You go from having $10,000 used on 50,000 limits... then you end up $10,000 on 10,000 limits.... see 1b.
5. There are really only a few things that a bank can not use in its decision to lend credit. Look up REG B in American lending. You can not descriminate based on Race, Creed, Religion, Age, Receipt of Public assistance....
NOW WITH THIS SAID:
Sami is using a quasi BOND-LOAN system. Your 'rating' will go down because of the fact that you are more leveraged and have no collateral to back it up. You are a greater risk to future loans right now. He is correct in lowering your rating.